Uniswap Activates Fee Switch, Burns 100M UNI Tokens
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 28 2025- Fee Switch Activation: Uniswap officially reduced all app and API fees to zero following governance approval and initiated a burn of 100 million UNI tokens, significantly enhancing its deflationary model and thereby increasing the long-term value and market appeal of the token.
- Strong Governance Support: The proposal received approximately 125 million votes in favor, demonstrating the community's strong confidence in Uniswap's future development, which will potentially lead to higher revenue for liquidity providers.
- Market Dynamics Shift: UNI is currently trading at $6.44 with a market cap of $4.71 billion, experiencing an 8.46% increase over 24 hours, although it remains 17.16% lower over the past 90 days, indicating a positive market response to the new policy.
- Liquidity Enhancement Strategy: By integrating protocol fees with the Unichain mainnet, Uniswap aims to enhance liquidity provider revenue through a discount auction system, further solidifying its position as a primary venue for token trading.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
